Over the years the component industry has adapted well to the changes in the policy & regulatory environment and the needs of its customers. To realize their ambition of graduating from being a build to print to one that is art to part, the auto component manufacturers must focus on R&D to help generate IP in India and in the process, create greater returns than the cost of capital to make India an attractive destination for investments.
The automotive industry is an engine of growth for the Indian economy. The auto component industry contributes 2.3% to National GDP, providing direct employment to 1.5 million people.
Aimed at an holistic growth model for the automotive industry, The Automotive Mission Plan (AMP 2026) has set a target of a turnover of USD 200 billion by 2026 for the auto component sector backed with strong exports ranging between USD 70 -80 billion.
ACMA would endeavor to focus on strengthening it’s members' capabilities for new product development, improving quality standards, evolving technology for meeting the evolving emission and safety standards, upgrading people skills to support domestic and global expansion.
The auto-component industry in India is today entering a new phase in terms of global exposure and adoption of technology. The priorities for the future would be to put much greater focus on R&D, to help generate intellectual property in India where world class production quality will be a given. It is important to acknowledge that a transformation is round the corner and we will have to gear up to it.
This calls for a more collaborative approach between the various stakeholders of the value chain i.e. component manufacturers, OEMs, Machine Tool Suppliers, the Raw Material industry and the Government.
I am confident that as an industry we will rise to the challenges and with the support of all stakeholders, firmly build on the global-quality manufacturing ethos that we have already established in the last few decades.
Today, the Indian auto component industry is well recognised globally with deep forward and backward linkages with several key segments of the economy.
ACMA’s active involvement in trade promotion, technology up-gradation, quality enhancement and collection and dissemination of information has made it a vital catalyst for the auto component industry’s growth and development. Its other activities include participation in international trade fairs, mounting trade delegations overseas and bringing out publications on various topical subjects related to the automotive industry.
ACMA’s charter is to develop a globally competitive Indian Auto Component Industry and strengthen its role in national economic development as also promote business through international alliances.
With the clarion call to ‘Make in India’ by our Hon’ble Prime Minister, the virtuous cycle of manufacturing is all set to roll. The campaign aspires to bolster domestic manufacturing by facilitating investment, fostering innovation, enhancing skill development, protecting intellectual property and building best in class manufacturing infrastructure in the country.
To help the auto component industry, the government has announced a slew a reforms in the Budget 2015 and the Foreign Trade Policy 2015. Forward looking policy measures such as announcement of introduction of GST, consolidation of various exports schemes, simplification of procedures to help integrate India into the global value chain, improving ease of doing business index through online and e-governance interventions and reducing the transaction costs augur well for the industry.
With reforms gathering momentum, the growth in the automotive industry is imminent, however we need to ensure that the industry, especially our tier-2 and tier-3 are ready for the next growth cycle. That apart focus on innovation and R&D are critical to help the industry leap frog to the next level.
Going forward, we envision of making India into a global export hub because of our inherent strengths of frugal engineering, cost advantages and quality benefits that India can provide to the rest of the world. With this vision in place the auto component industry is all set to be the engine for India’s economic growth.
Director General, ACMA